Not by itself. Assess the actual enterprise the investor will develop and direct, including the resources, revenue and expenses attributable to it.
Evaluate the operation that transfers
Identify what leaves the seller’s group and what remains behind. Explain the acquired business’s capacity under the nonmarginality standard rather than treating all group results as its own. Treaty nationality, substantial committed at-risk investment and real operations remain separate requirements.
A well-known seller or large consolidated balance sheet does not replace the evidence for the buyer’s enterprise. Hypothetical example: A Trois-Rivières buyer acquires a bicycle-repair membership shop but the seller keeps the booking platform and several mechanics. The first review should list what the buyer receives, what must be replaced and how the business will operate on opening day.
It must also test treaty nationality, the applicant’s role in developing and directing the enterprise, capital genuinely committed and exposed to loss, and whether the business is real and nonmarginal. A seller’s successful history cannot answer those questions for the carved-out shop. The decision is whether to renegotiate missing operating assets, fund replacements, or defer the case until the enterprise can be described accurately.
Do not call a deposit or a conditional payment at risk merely because the parties expect a closing.